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If you chose to place your child's minor settlement funds in a custodial account, you would need to obtain permission to access the funds from the probate court that approved the settlement.
The agreement should set forth what money is being paid for, i.e., the type of damages, as well as the claims it is being paid on. If some damages are taxable and some are not, the settlement agreement should set out, in as much detail as possible, the proportions and rationale.
What Should Be Included in a Settlement Agreement? Identifying information for all involved parties. A description of the issue you're seeking to settle. An offer of resolutions that both parties agree to. Proof of valid consideration from both parties without coercion or duress. Legal purpose.
Normally, the court will not allow the parent to have any of the money for the parent's own financial reasons. This is because the court views the money as compensation that belongs to the child and not for the financial benefit of the parent.
Although your lawyer cashes your settlement check and manages the disbursement of the money, your attorney cannot just take the funds from you. This money is legally yours, once debts have been satisfied and liens have been cleared.
If there are multiple children, an Application to Settle a Minors Claim must be filed for each child. It the net amount of settlement is $25,000 or more, you must file to have a guardian of the estate appointed prior to the settlement being approved (see instructions for minor guardianship).
If a person has child support arrears, a lien can be placed on their personal injury settlement. If this happens, the individual may be unable to access their personal injury settlement funds until their back child support is paid. At this point, only a portion of their initial settlement may be available.